Mesaba Energy Project
A special Minnesota law passed in 2003 committed Minneapolis-based Xcel Energy to buy 450 megawatts (MW) of power from Excelsior Energy’s proposed Mesaba Energy Project. However, Mesaba has drawn criticism from Xcel itself, as well as from business groups on the basis of its high projected costs."Mesaba Energy Faces Uphill Fight", BusinessNorth.com, February 10, 2007. In April 2007, the Minnesota Public Utilities Commission’s Administrative Law Judges recommended that the plant be denied a Power Purchase Agreement, as it is not a least-cost resource, nor an “innovative energy project” as defined by state law."PUC Cools to Idea of 'Clean Coal’ Plant on Iron Range", Star Tribune on Minnesota Coal Gasification Plant Information Website, November 1, 2007. In August, the state PUC affirmed this finding, arguing that the Integrated Gasification Combined Cycle (IGCC) plant is not in the public’s best interest; however, it ruled that Excelsior could meet its demands by introducing carbon capture mechanisms."State Agency Blocks Coal Power Plant", Minnesota Center for Environmental Advocacy website, August 3, 2007. In late Oct. 2007, the Minnesota Department of Commerce posted draft environmental impact statements (EIS) for the plant."DEIS Now Available Online",Minnesota Coal Gasification Plant Informational Website], accessed January 2008. At a Nov. 27 public hearing to discuss the EIS in Taconite, numerous area residents expressed opposition to the plant."Critics voice concerns at Iron Range power plant EIS meeting", Minnesota Public Radio, November 28, 2007. Written comments on the EIS were due by Jan. 11, 2008.Minnesota Coal Gasification Plant Informational Website, accessed January 2008. The Sierra Club submitted comments detailing the harmful effects of the plant's carbon dioxide and toxic air pollutant emissions. Also in January 2008, the Minnesota Court of Appeals dismissed the Excelsior's appeal of the PUC's findings from August 2007."Stopping the Coal Rush", Sierra Club, accessed December 2007. (This is a Sierra Club list of new coal plant proposals.) In April 2008, Minnesota’s Public Utility Commission issued an order stating that Excelsior Energy needed to find a larger, state-wide market before the Mesaba unit could be considered financially viable for consumers. Excelsior is now awaiting the PUC’s decisions on several other issues that will determine whether or not the utility company will be able to move forward with its proposal."Stopping the Coal Rush", Sierra Club, accessed November 2008. (This is a Sierra Club list of new coal plant proposals.) In August 2007, the MN PUC rejected the power purchase agreement for the Mesaba plant, and ordered Excelsior and Xcel to enter into negotiations to find a mutually beneficial solution. In September 2008, the Public Utilities Commission issued an order that by May 1, 2009, Excelsior and Xcel would no longer be legally bound to continue negotiations and the case would automatically close unless they filed an agreed upon power purchase agreement or a joint request for a time extension."Stopping the Coal Rush", Sierra Club, accessed May 2009. (This is a Sierra Club list of new coal plant proposals.) Project Details Sponsor: Excelsior Energy Location: Itasca County, Minnesota Capacity: 603 MW Type: IGCC Status: On hold after denial of permit Financing Citizen Groups *Citizens Against the Mesaba Project, info at camp-site.org *Fresh Energy, info at fresh-energy.org *Minnesota Center for Environmental Advocacy, mcea at mncenter.org *Minnesota Sierra Club, north.star.chapter at sierraclub.org Resources References Related SourceWatch Articles *Michigan and coal External links *"Tracking New Coal-Fired Power Plants: Coal's Resurgence in Electric Power Generation", National Energy Technology Lab, May 2007, page 15. (Pdf) *Facility Permitting Project Docket, Minnesota Public Utilities Commission, accessed January 2008. (This is a list of plant-related hearings and filings, including the Draft Environmental Impact Statement.) * Renee Passal, "Loans from Iron Range Resources Questioned", WDIO-DT (Duluth), May 28, 2008. *Minnesota Coal Gasification Plant Informational Website Category: Proposed coal plants in MinnesotaCategory:Integrated Gasification Combined Cycle (IGCC)